Regulations on electronic money institutions


Date FOR-2011-12-21-1444


Affairs Ministry


Published in 2011 Booklet 15


Commencement 01/01/2012

Edited


Changes

FOR 2003-04-15-465, FOR-2010-07-01-1049, TO-2009-03-13-302

For
Norway

Legal

LOV-1988-06-10-40-§4c-3 cf. LOV-2015-04-10-17-§23-2

Promulgated
03.01.2012 kl. 15.00

Short Title
Regulation on electronic money institutions

Chapter Overview:

Chapter 1. Introductory provisions (§§ 1-2)
Chapter 2. Permission (§3)
Chapter 3. Requirements for Capital (§§ 4-6)
Chapter 4. Securing customer funds (§§ 7-8)
Chapter 5. Redemption (§ 9)
Chapter 6. Accounting and statutory audit etc. (§10)
Chapter 7. Use of agents and other contractors (§11)
Chapter 8. Norwegian payment institutions 'activity abroad (§12)
Chapter 9. Foreign firms' operations in Norway (§13)
Chapter 10. Final provisions (§§ 14-16)

Adopted by the Ministry of Finance on 21 December 2011 pursuant to Act 10 June 1988 no. 40 Financial Institutions and Financial Institutions (Financial Institutions Act) § 4c-3.
EEA information: EEA Agreement Annex IX. 15 (Directive 2009/110 / EC).

Chapter 1. Introductory provisions

§ 1 Scope, definitions, committee handling exceptions etc. The regulation establishes requirements for enterprises to operate as electronic money institutions as mentioned in the Financial Institutions Act § 4c-1 to § 4c-3.
FSA supervises electronic money institutions registered in accordance with § 3, cf. Financial Supervision Act.
Electronic money institutions shall be connected to an appeals as mentioned in the Financial Contracts § 4 for dealing with disputes about payment services.

§ 2. Exemptions The Ministry may in individual exempt an electronic money institution from some or all of the provisions contained in or pursuant to the Financial Institutions Act section 4c if the maximum can be saved an amount in Norwegian kroner that corresponds to 150 euros on the electronic medium and the following conditions are met:

1.
Total liabilities related to outstanding electronic money shall on average not exceed an amount in Norwegian kroner that corresponds to EUR 5 million, and

2.
Terms of regulations on payment institutions § 4 subsection k) and l) are met.

An electronic money institutions as the Ministry under subsection has exempted from some or all of the provisions of this Act, except the provisions referred to in the Act on Financial Institutions § 4c-3 first paragraph shall be recorded in accordance with § 3. The Company shall annually submit annual report or other statement of operations for FSA. The report shall include information on the size of the total liabilities related to electronic money. The report must be received by the Financial Supervisory Authority no later than 1 August of the following year.
An electronic money institution which is waived under subsection shall notify FSA of changes that may result in the conditions for exemption no longer fulfilled. If the conditions are no longer met, the entity shall within 30 days apply for a permit in accordance with § 3

Chapter 2. Permission

§ 3. Application for license, etc.. Regulations on payment institutions § 2 and § 4 to 7 apply correspondingly insofar as appropriate for the application for, grant of and withdrawal of permission e-money institution by the Financial Institutions Act § 4c-2.

Chapter 3. Requirements for capital

§ 4. Start capital An electronic money institutions shall have an initial capital in Norwegian kroner that at least corresponds to 350,000 euros.
Start capital shall consist of share capital, primary capital or other equity as set out in Directive 2006/48 / EC Article 57 letters a and b, cf. Regulations of 1 June 1990 no. 435 on the calculation of regulatory capital for financial institutions, clearing houses and securities firms .

§ 5. Capital Electronic money institutions shall at all times have a capital base that at least the higher of the following amounts:

1.
An amount in Norwegian kroner that corresponds to the initial capital or

2.
Sum of

-
Two percent of the average value for the last six months of the electronic money institution's liabilities related to outstanding electronic money, and

-
The amount obtained by regulations on payment institutions § 9 first paragraph b for any payment service business that they carry and which is not related to the issuance of e-money.

Regulations on payment institutions § 9 subsections shall apply mutatis mutandis to electronic money institutions.


§ 6. Application of Bank Guarantee Act Law 6 December 1996. 75 on Guarantee Schemes for Banks and Public Administration etc. of financial institutions Chapter 3 on payment and capital adequacy difficulties apply correspondingly to electronic money institutions, with the exception of the provisions of § 3-4 , § 3-5 second and third paragraph, and § 3-6.

Chapter 4. Securing customer assets

§ 7. Requirements for hedge funds Funds paid to electronic money institutions by issuing e-money should be ensured in accordance with the Financial Institutions Act § 4c-2, fourth paragraph. Regulations on payment institutions § 10 subsections and sixth paragraphs apply correspondingly insofar as appropriate.
Funds received in the form of a payment by a payment instrument need not be secured before they are credited to a payment account with an e-money institutions, or otherwise made available to electronic money institution. The funds will however be made no later than five banking days after the e-money payment concerned is received.
For funds received by electronic money institutions which are not related to the issuance of e-money, the Regulation concerning payment institutions § 10.
Electronic money institutions shall inform the FSA in advance of significant changes in measures to ensure customer funds.

§ 8. Confidence 'and employees' own account trading elected officers 'and employees' trading for their own account in financial instruments applicable Securities Trading Act § 8-1 to § 8-7.

Chapter 5. Redemption

§ 9. Put Option bearer of electronic money may at any time require the electronic money institution free redeeming electronic money at par value. If the agreement is indefinite, the redemption costs required if required by the agreement, and the redemption is required before the agreed expiration date or more than one year after the expiry of the agreement. Redemption costs shall not be higher than the company's actual costs at redemption.
Agreement between the issuer and the bearer shall clearly state the conditions of redemption, including costs associated with the redemption. Bearer of electronic money should disclose those terms before a binding agreement is signed.
It can not be agreed conditions which deviate from the terms of subsections in consumer contracts.

Chapter 6. Accounting and statutory audit etc.

§ 10. Accounting, reporting, auditing and storage of documents Regulations on payment institutions § 11 - § 13 apply correspondingly to electronic money institutions

Chapter 7. Use of agents and other contractors

§ 11. Use of contractors and sales channels Electronic money institutions can not issue e-money through agents.
Regulations on payment institutions § 14 - § 16 apply correspondingly insofar as appropriate for electronic money undertaking payment service business. Redemption and distribution of electronic money may likewise occur through natural or legal persons acting on behalf of the firm.

Chapter 8. Norwegian payment institutions' activities abroad

§ 12. Activities abroad Regulations on payment institutions § 20 - § 23 apply correspondingly to electronic money institutions to the extent applicable.
An electronic money institution that Ministry pursuant to § 2 subsection has exempted from some or all of the provisions of the law, are not allowed to establish a branch or engage in cross-border activity in another state in the EEA.

Chapter 9. Foreign firms' operations in Norway

§ 13. Cross-border activities and branches of electronic money institutions Electronic money institutions headquartered in another state in the EEA satisfying the requirements of Directive 2009/111 / EC, can operate in Norway when FSA has confirmed having received the necessary information from supervisory authorities in the firm's home state. Regulations on payment institutions § 24 - § 25 apply correspondingly to electronic money institutions to the extent applicable.
For electronic money institution headquartered in a state outside the EEA, and that does not meet the terms of the Financial Institutions Act § 4c-1, third paragraph, the regulations on payment institutions § 27 correspondingly to electronic money institutions to the extent appropriate.

Chapter 10. Final Provisions

§ 14. Transition rules Undertakings domiciled in this country and that the Regulation came into force legally operating activities consisting of issuing electronic money shall be deemed to have a permit under § 3 and the right to continue operations until further notice.
An electronic money institution as mentioned in the first paragraph, shall by 1 March 2011 submit to the FSA a plan either how the requirements given in or pursuant to the Financial Institutions Act section 4c be made after the law has come into force or for liquidation of business. The undertaking shall give Kredittilsynet all information necessary to assess whether the entity complies with the requirements imposed by or under this Act.

Similarly undertakings under Law 13 December 2002 no. 74 on electronic money institutions § 2.1 is exempt from all or some of the provisions of the Act, could continue operations until 31 April 2012 if a permit under § 3 or exception under § 2 is not provided.

§ 15. Entry into force This regulation enters into force on 1 January 2012. From the same date Regulation 15 April 2003 no. 465 on electronic money institutions.

§ 16. Amendments to other regulations From the time the regulation enters into force, the following amendments to other regulations: - - -